Going through a separation or divorce? Your home can be the asset that gives both partners a fresh start.
 June 1 2016     Posted by

Going through a separation or divorce? Your home can be the asset that gives both partners a fresh start.

If you have a final separation agreement, then talk to your mortgage broker about how the value in your home and the power of your mortgage can help you both move forward on firm footing. Your broker will start by asking some key questions:

1)      Are you hoping to stay in the existing home?

Many couples assume that the house must be sold – but that’s not always the case. Your mortgage broker has resources that can help one partner remain in the home. The home can be refinanced up to 80 per cent of its value. You’ll need to determine if this equity can pay off joint debt and provide a payout if it’s required. Or one spouse can purchase the home outright from the other spouse who then comes off title. A Spousal Separation Mortgage allows a buyout to 95 per cent, which can provide a fair buyout and possibly pay off any other joint debt. 

2)      Do you want to buy a new home?

Your mortgage broker can let you know what you can qualify for and what is affordable for you in your current financial situation. 

3)      Will you need to boost your credit rating?

A less-than-stellar credit rating can affect your ability to get the best mortgage rates. Your broker has some quick strategies to help you polish your credit, and to build (or rebuild) your credit over time.

Feeling overwhelmed? That’s normal. It’s hard enough to get through the process of splitting assets in the event of a separation or divorce. What if one of you wants to keep the family home?   

We can help.

Although mortgage rules mean you can only refinance your home to 80 per cent of the value, a Spousal Separation Mortgage allows a buyout to 95 per cent, making it easier for one spouse to keep the home.  This new mortgage can provide a fair buyout, and possibly pay off other joint debt.

When one of you wants to keep the marital home… make us one of your first calls. We may be able to help clear some of the financial hurdles. We’ll guide you through the process, structuring the mortgage for the buyout of one spouse, and then help the other spouse with the purchase of a new home as well.  We believe that your home can be the asset that gives both partners a fresh start!